Savaria Announces Results for the First Quarter of 2014
15 Mai 2014 - 2:00PM
Marketwired
Savaria Announces Results for the First Quarter of 2014
LAVAL, QUEBEC--(Marketwired - May 15, 2014) - Savaria
Corporation (TSX:SIS), North America's leader in the accessibility
industry, discloses its results for its first quarter ended March
31, 2014.
First-Quarter Highlights
- Record revenue for a first quarter of $17.7 million, up 3%,
from $17.2 million in 2013;
- Net income of $1.2 million for the first quarter, stable
compared to 2013;
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") of $2.2 million for the first quarter of 2014 compared
to $2.3 million in 2013, slightly down by $58,000 or 2.5%;
- Declaration in March 2014 of a dividend of 13 cents ($0.13) per
common share, broken down into 2 cents ($0.02) for Q4 2013 plus a
special year-end dividend of 11 cents ($0.11);
- Signing of an agreement regarding a private placement that was
completed on April 15, 2014 resulting in the issuance of 5,750,000
shares and gross proceeds of $18.7 million.
A Word from the President
"I am very pleased with the achievements of the first quarter of
2014. Despite a difficult start to the year caused by bad weather
in eastern North America, we achieved results similar to the first
quarter of 2013, which was the best first quarter ever for
Savaria," declared Marcel Bourassa, President and Chief Executive
Officer of Savaria.
"After the end of the quarter, Savaria completed a private
placement to a net amount of $17.7 million, received on April 15,
2014. We are very happy with the market's positive response to our
offer. This new cash influx will allow the Corporation to fast
track some expansion projects to accelerate growth," concluded Mr.
Bourassa.
Operating Results (Comparative Analysis with First Quarter of
2013)
- In the first quarter of 2014, revenue is up $485,000 or 2.8%,
from $17.2 million in first quarter 2013 to $17.7 million in
2014.
- The gross margin for the first quarter of 2014 is up by
$229,000, at 29.2% of revenue compared to 28.7% in the first
quarter of 2013.
- Operating income for the first quarter of 2014 decreased by
$304,000 or 17.1% from $1.8 million in 2013 to $1.5 million in
2014. Were it not for an income of $350,000 recorded in the first
quarter of 2013 derived from a successful appeal related to sales
tax, operating income for the first quarter of 2014 would have been
up $46,000 or 3.2%.
- At $1.2 million, net income for the first quarter of 2014 is
stable with the first quarter of 2013.
- EBITDA for the first quarter fell from $2.3 million or 10 cents
per share in 2013 to $2.2 million or 9 cents per share in 2014, a
slight decrease of $58,000.
Dividend
As per the Corporation's new dividend policy, the Board of
Directors has declared a dividend of 3.5 cents ($0.035) per common
share, payable on June 9, 2014 to shareholders of record of the
Corporation at the close of business on May 26, 2014. This is an
eligible dividend within the meaning of the Income Tax Act.
Savaria Corporation (savaria.com) is North America's leader in
the accessibility industry focused on meeting the needs of people
with mobility challenges. Savaria designs, manufactures, installs
and distributes primarily elevators for home and commercial use, as
well as stairlifts and vertical and inclined platform lifts. In
addition, it converts and adapts minivans to be wheelchair
accessible. The diversity of its product line, one of the world's
most comprehensive, enables the Corporation to stand out by
proposing an integrated and customized solution for its customers'
mobility needs. Its operations in China have substantially grown
and the collaboration with Savaria's other Canadian facilities
increases its competitive edge in the market place. The Corporation
records some 60% of its revenue outside Canada, primarily in the
United States. It has a sales network of some 600 retailers in
North America and employs some 380 people at its head office in
Laval and at its plants and sales offices in Montreal (Quebec),
Brampton and London (Ontario), Calgary (Alberta) and Huizhou
(China).
Compliance with International Financial Reporting Standards
("IFRS")
The information appearing in this press release has been
prepared in accordance with IFRS. However, the Corporation uses
EBITDA for analysis purposes to measure its financial performance.
This measure has no standardized definition in accordance with IFRS
and is therefore regarded as a non-IFRS measure. This measure may
therefore not be comparable to similar measures reported by other
companies. Reconciliation between net income for the period and
EBITDA is provided in the Financial Highlights section
below.
Cautionary Notice Regarding Forward-Looking Statements
Certain information in this press release may constitute
"forward-looking statements" regarding Savaria, including, without
being limited thereto, understanding of the elements that might
affect the Corporation's future, relating to its financial or
operating performance, the costs and schedule of future
acquisitions, supplementary capital expenditure requirements and
legislative matters. Most frequently, but not invariably,
forward-looking statements are identified by the use of such terms
as "plan", "expect", "should", "could", "budget", "expected",
"estimated" "forecast", "intend", "anticipate", "believe", variants
thereof (including negative variants) or statements that certain
events, results or shares "could", "should" or "will" occur or be
achieved. Such statements involve known and unknown risks,
uncertainties and other factors liable to cause Savaria's actual
results, performance or achievements to differ materially from
those set forth in or underlying the forward-looking statements.
Such factors notably include general, economic, competitive,
political and social uncertainties. Although Savaria has attempted
to identify the key elements liable to cause actual measures,
events or results to differ from those described in the
forward-looking statements, other factors could have an impact on
the reality and produce unexpected results. The forward-looking
statements contained herein are valid at the date of this press
release. As there can be no assurance that these forward-looking
statements will prove accurate, actual future results and events
could differ materially from those anticipated therein.
Accordingly, readers are strongly advised not to unduly rely on
these forward-looking statements.
Complete financial statements and the management's report for
quarter ended March 31, 2014 will be available shortly on Savaria's
website and on SEDAR (www.sedar.com).
Financial Highlights
(in thousands, except per-share amounts and percentages -
unaudited) |
Quarters Ended March 31, |
|
|
2014 |
|
2013 |
|
Change |
|
Revenue |
$ |
17,688 |
|
$ |
17,203 |
|
|
2.8 |
% |
Gross margin as a % of revenue |
|
29.2 |
% |
|
28.7 |
% |
|
n/a |
|
Operating costs |
$ |
3,689 |
|
$ |
3,506 |
|
|
5.2 |
% |
As a % of revenue |
|
20.9 |
% |
|
20.4 |
% |
|
n/a |
|
Operating income |
$ |
1,474 |
|
$ |
1,778 |
|
|
(17.1 |
)% |
As a % of revenue |
|
8.3 |
% |
|
10.3 |
% |
|
n/a |
|
Gain on foreign exchange |
$ |
309 |
|
$ |
96 |
|
|
222 |
% |
Net income |
$ |
1,205 |
|
$ |
1,232 |
|
|
(2.2 |
)% |
Earnings per share - basic and diluted |
$ |
0.05 |
|
$ |
0.05 |
|
|
- |
% |
EBITDA (1) |
$ |
2,220 |
|
$ |
2,278 |
|
|
(2.5 |
)% |
EBITDA per share - basic and diluted |
$ |
0.09 |
|
$ |
0.10 |
|
|
(10 |
)% |
Dividends declared per share |
$ |
0.13 |
|
$ |
0.08 |
|
|
n/a |
|
Weighted average number of commonshares outstanding - diluted |
|
23,748 |
|
|
23,109 |
|
|
n/a |
|
|
|
|
|
|
As at March 31, 2014 |
|
|
As at Dec. 31, 2013 |
|
Total assets |
|
|
|
$ |
51,537 |
|
$ |
49,013 |
|
Total liabilities |
|
|
|
$ |
34,061 |
|
$ |
28,780 |
|
Shareholders' equity |
|
|
|
$ |
17,476 |
|
$ |
20,233 |
|
(1) |
Reconciliation of EBITDA with net income
provided in the following table. |
Although EBITDA is not recognized according to IFRS, it is used
by management, investors and analysts to assess the Corporation's
financial and operating performance.
Reconciliation of EBITDA with Net Income
(in thousands of dollars - unaudited) |
Quarters ended March 31, |
|
2014 |
2013 |
Net income |
$ |
1,205 |
$ |
1,232 |
Plus : |
|
|
|
|
Interest on long-term debt |
|
136 |
|
174 |
Interest expense and banking fees |
|
22 |
|
22 |
Income tax expense |
|
422 |
|
478 |
Depreciation of fixed assets |
|
240 |
|
173 |
Amortization of intangible assets |
|
197 |
|
201 |
Less: |
|
|
|
|
Interest income |
|
2 |
|
2 |
EBITDA |
$ |
2,220 |
$ |
2,278 |
Helene Bernier, CPA, CAVice President, Finance1-800-931-5655,
ext. 248helene.bernier@savaria.comMarcel BourassaPresident and
Chief Executive
Officer1-800-661-5112marcel.bourassa@savaria.comwww.savaria.com
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